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PSUs are cautious in releasing more funds for Games: Deshmukh

Amid raging controversy over the allegations of corruption in the Commonwealth Games, the CPSU may not release more funds for the mega sporting event till a clearer picture emerges on the various issues.



New Delhi: Amid raging controversy over
the allegations of corruption in the Commonwealth Games, the
Central Public Sector Units may not release more funds for the
mega sporting event till a clearer picture emerges on the
various issues that have been raised so far.

The public sector units are "cautious" in shelling out
more money for the event against the backdrop of the alleged
fund-bunglings, Heavy Industries and Pubic Enterprises
Minister Vilasrao Deshmukh said.

"I don`t think so because of all this controversy. (But)
We are waiting for things to be clearer," he said when asked
if PSUs will release more funds for the mega sports event
that has got mired in the corruption controversy.

In fact, state-owned Power Grid Corporation, which had
committed Rs 10 crore, has not released the funds for the
extravaganza, slated for October 3-14, 2010.

Similarly, Indian Railways too has made a budgetary
provision of Rs 100 crore. Sources said it has now sought
clarifications from the Organising Committee about the usage
of the funds.

However, Central Bank of India has already contributed Rs
50 crore to the Games, while NTPC, which had committed Rs 50
crore, contributed Rs 20 crore in February and the rest is yet
to be released.

The corruption allegations began with a Central Vigilance
Commission (CVC) report which pointed out financial bunglings
in handling of construction and other contracts.

Actually, before the corruption charges surfaced, the
Department of Public Enterprises had in June written a letter
to top-performing Maharatnas and Navratnas, asking them to
make generous contributions to the event.

It had said "the CPSEs should volunteer to help the CWG
as a part of their corporate social responsibility."

An official said the "goings-on" in the CWG have shaken
the confidence of the PSUs, which otherwise would have helped
the Games as a matter of national pride.

The CWG organising committee had a budget of Rs 1,600
crore which it had obtained from the government and had
promised to return by earning sponsorships, television rights
and ticket sales. In the absence of sponsors, it is likely to
fall quite of short of covering its budget.

Air India, the official carrier of the CWG, has chipped
in with tickets for officials and players as part of its
contribution to the event. The airline`s contribution in
kind -- tickets and chartered flights -- is estimated to be
about Rs 50 crore.

PTI

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